R-15.1 - Supplemental Pension Plans Act

Section 215 Disposition versions

2001-01-01

215. (Repealed).

1989, c. 38, s. 215; 2000, c. 41, s. 123.

1999-04-01

215. Any benefit derived from an obligation arising from the pension plan and causing an initial unfunded liability not fully amortized at the date of cessation of contribution payments shall be reduced for payment purposes if, at that date, the value of n in the following formula is greater than zero:

                        p - (c - a) = n

where

“p” represents the value established in accordance with section 211, of such unpaid benefit at the date of cessation of contribution payments;

“c” represents the initial value of the unfunded liability, discounted at the date of cessation of contribution payments and reduced by the value of the benefits already paid at that date;

“a” represents the value, discounted at the date of cessation of contribution payments, of the payments which, if the plan had not been terminated, would remain payable to amortize that portion of the unfunded liability which relates to the unpaid benefits at that date.

Values c and a shall be determined using the same interest rate as that used to determine the amortization amounts relating to the unfunded liability, taking into account the amortization period covered by each of the values.

The reduction is obtained by multiplying the amount of each such benefit by the following fraction, which shall not be greater than 1:

                        p - (c - a)
                       -------------
                             p

1989, c. 38, s. 215.